Fannie Mae's automated underwriting system is ready to process Federal Housing Administration single-family loans using FHA's new scorecard, according to the secondary market agency."We are pleased to be the first in the industry to offer lenders the FHA TOTAL scorecard," said Fannie Mae senior vice president Pam Johnson said. [TOTAL stands for Technology Open To All Lenders.] Starting May 1, Department of Housing and Urban Development is requiring all AU processing to use TOTAL for FHA loans. Fannie Mae helped market test the TOTAL scorecard. "Our experience with the market test over the past year has allowed Fannie Mae to offer a smooth transition to our lenders who choose to use the [FHA] scorecard before it becomes mandatory," Ms. Johnson said. To meet the May 1 deadline, Freddie Mac is gradually transitioning its lenders to TOTAL scorecard, a spokeswoman said. Over 40% of FHA loan are processed by AU systems.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry